Document Content

JOINT CIRCULAR No.62/1998/TTLT-BTC-BCN OF MAY 13, 1998 ON THE MANAGEMENT AND USE OF PROCEEDS FROM THE SALE OF BID-SOLICITING DOSSIERS ON FOREIGN B.O.T PROJECTS

Pursuant to Decree No.87-CP of November 23, 1993 of the Government promulgating the Regulation on investment in the form of build-operate-transfer contracts;

Pursuant to Decree No.43-CP of July 16, 1996 of the Government promulgating the Regulation on bidding and inter-ministerial Circular No.02/TTLB of February 25, 1997 of the Ministry of Planning and Investment and the Ministry of Trade guiding the implementation of the Regulation on bidding;

Pursuant to the Prime Minister's decision to assign the Ministry of Industry to act as the State agency competent to execute BOT projects in the electric power industry;

To create conditions for the efficient implementation and execution of BOT projects in the electric power industry, the Ministry of Finance and the Ministry of Industry hereby unanimously issue the following major provisions on the management and use of proceeds from the sale of bid-soliciting dossiers on BOT projects in the electric power industry:

I. GENERAL PROVISIONS

1. Activities in service of the solicitation and/or evaluation of bids for the foreign BOT projects under the management of the Ministry of Industry shall be conducted on the principle of self-financing. The Ministry of Finance shall not allocate budget funds to cover the expenses for such activities.

2. Depending on the characteristics and scale of each bidding package, the bid solicitor (the Ministry of Industry) shall be entitled to set the price of each bid-soliciting dossier. Such a price is determined on the basis of the reasonable expenses defined in Point 2, Section II of this Circular.

The Ministry of Industry shall be entitled to retain the proceeds from the sale of dossiers to cover expenses for the activities related to the bid solicitation and evaluation.

3. Activities related to the bid solicitation and evaluation must be conducted in accordance with the current regulations.

II. SPECIFIC PROVISIONS

1. Proceeds from the sale of bid-soliciting dossiers shall be remitted by the Ministry of Industry into its account opened at the State Treasury.

2. Expenses include:

- Expenses for the examination and evaluation of the projects, including the expenses for meals, accommodation and traveling;

- Expenses in service of the project execution: hiring and/or procurement of working facilities, office equipment and documents. Expenses for professional training and guidance, document printing and translation, stationery, etc.

- Expenses for hiring consultants to take part in the project study and evaluation;

- Expenses for hiring lawyers to provide legal consultancy;

- Allowances for members of the bid evaluation council.

III. ORGANIZATION OF IMPLEMENTATION

1. Depending on each given period, work volume to be performed and the tempo of execution of BOT contracts already signed, the Ministry of Industry shall draft quarterly expenditure estimates then submit them to the State Treasury for allocation, according to the execution tempo of projects.

2. Each year, the Ministry of Industry shall make final settlement of financial revenues and expenditures related to the bid solicitation and evaluation, then send reports thereon to the Ministry of Finance.

Upon completing each project, if the proceeds from the sale of bid-soliciting dossiers is larger than the expenses defined in Point 2, Section II of this Circular, the Ministry of Industry shall have to remit the surplus amount to the State budget.

This Circular takes effect from January 1st, 1998. The two ministries shall have to study all matters arising in the course of implementation for necessary amendments.

For the Minister of Industry

Vice Minister

LE HUY CON

For the Minister of Finance

Vice Minister

PHAM VAN TRONG